I am long the sector and maintain core holdings in a number of O&G companies. From XOM to UPL, from BBEP to LNCO. Love this group going forward. Even playing with UNG and the thrill of UGAZ (up 8% today alone). Here is what has been working for me. Buy short term calls leading up to earnings ..catching small rallies. But get out 2 days before announcement. Expect a tank on earnings report, buy back in common or options and ride rapid recovery. This has worked tremendously for me. LNCO behaving much the same. Made excellent trades with UPL and CHK doing exactly this. By the way, the tank doesn't seem to have much to do with actual news, they are all behaving the same, good news or bad. Good luck.
That is a strange, unexplainable trend. Watching these companies for the past year, I see this trend too and may jump on your band wagon in the future. Though my preference is more of a buy it when it's low, hold tight and DRIP for the next 30 years, not caring as much about PPS, except to keep adding shares on dips. This strategy has worked well for me and I'm sitting pretty in my LNCO basket for the year. I got into LNCO through BRY and my average PPS is...well...I won't brag. Let's just say that I averaged up my cost basis at yesterdays low. I expect 3rd quarter to really kick butt!!! Hang in there Longs!!
Owning common in a dividend payer of 9%+ is a pretty solid path. Especially one where appreciation apart from dividends is a solid possibility. What I try to do is retain core positions and trade around them if I see predictable patterns. When it works my returns can double that easily of the common alone. Suited only for those who tolerate risk.